OPERATOR INCREASES VALUE OF 23 WELLS BY $115,000 PER STAGE
DENVER, August 28, 2014—Fairmount Santrol presented a technical paper Wednesday proving proppant flowback prevention technology increased the value of 23 wells by $115,000 per stage or $2.6 million. The company presented the paper—The Long-Term Economic Value of Curable Resin-Coated Proppant Tail-In to Prevent Proppant Flowback and Reduce Workover Cost—at the Unconventional Resources Technology Conference (URTeC).
The paper details a 15-month research project comparing production time and workover expenses following the hydraulic fracturing of 23 curable resin-coated proppant wells and 23, 100% frac sand wells. The 46 single-stage, vertical wells are located in the AWP field, McMullen County, Texas, near the Eagle Ford formation. The well data are from a 10-year time frame during the early 1990s through May 2013.
The wells with the curable resin-coated proppant, which prevented proppant flowback into the wellbore, yielded a total of $114,614 additional value per stage by recording
-increased production from less downtime
-increased NPV from fewer well failures
-increased NPV from lower material cost.
During proppant flowback, the proppant flows out of the reservoir fractures and into the wellbore. This undesirable situation, which can occur throughout the well life cycle, can result in damage to rod pumps and surface production facilities. An operator must stop hydrocarbon production to repair the damage. In addition to the lost proppant investment, the lost production time cannot be recaptured.
The right curable resin-coated proppant with the correct resin bond strength, or unconfined compressive strength (UCS), ensures proppant flowback prevention. As the proppant cures and bonds, frac sand is locked into the fractures rather than coming back into the wellbore. This desirable scenario enables greater hydrocarbon production from less downtime, as shown in the technical paper’s 23 resin wells.
“Curable resin-coated proppant is a better choice to produce a better well in a formation that has a history of proppant flowback,” said Nick Johnson, vice president of Marketing for Fairmount Santrol. “The increased online production time and significantly reduced total workover cost are important factors to consider when designing a hydraulic fracturing program.”
The 46 wells reviewed in the technical paper are located in the Olmos formation of south Texas. Because the formation is a tight, low-porosity, low-permeability sand, oil and gas will not flow naturally. Hydraulic fracturing is required.
ABOUT FAIRMOUNT SANTROL
Fairmount Santrol, formerly Fairmount Minerals, is a leading provider of high-performance sand and sand-based products used by oil and gas exploration and production companies to enhance the productivity of their wells. The company also provides high-quality products, strong technical leadership, and applications knowledge to end users in the foundry, building products, water filtration, glass, and sports and recreation markets. Global logistics capabilities include a wide-ranging network of distribution terminals and thousands of railcars that allow the company to effectively serve customers where they operate. As one of the nation’s longest continuously operating mining organizations, Fairmount Santrol has developed a strong commitment to sustainable development, environmental stewardship, and operational safety. Correspondingly, the company’s motto and action orientation is: “Do good. Do well.”